IMF Anti-Money Laundering Pilot Project

The International Monetary Fund (IMF) announced today that its Executive Board has approved a 12-month pilot project that *”significantly advances the IMF’s contribution to AML/CFT, the international efforts to combat money laundering and the financing of terrorism.”*

The Financial Action Task Force (FATF) 40 Recommendations on an effective anti-money laundering framework, and the 8 Special Recommendations on Terrorism Financing (FATF 40+ 8), have been added to the list of areas and associated standards and codes that are incorporated into the operational work of the Fund.

AML/CFT assessments of the FATF 40+8 and accompanying Reports on the Observance of Standards and Codes (ROSCs) now will be undertaken by the IMF and the World Bank in the context of the Fund/Bank Financial Sector Assessment Program and the Fund’s Offshore Financial Center assessments. To conduct the assessments, the IMF and World Bank will follow the AML/CFT assessment methodology that was endorsed by the FATF on October 11, 2002, and also approved by the Executive Board as part of the pilot project’s launch. This methodology had been reviewed by the Board on July 26, 2002 and was awaiting actions by FATF at its Plenary on October 11, 2002 to become operational. (See link below)

The FATF also will apply the AML/CFT assessment methodology in mutual evaluations carried out for FATF member countries.